New Regional Aid Map Caps State Funding in Southwest Bulgaria

State aid to companies in Southwest Bulgaria will be limited to 25% of eligible investment costs, and in all other regions - to 50 %.

The provision is part of Bulgaria's Regional aid map for the period 2014-2020 which was adopted Wednesday, Dnevnik reports.

The map, containing the geographical areas where companies can receive regional state aid, and at which intensities, must be approved by the European Commission before coming into effect as of July 1, 2014.

The new map allows an increase up to 60% (35% for the Southwest region) of gross grant equivalent (GGE) for medium-sized enterprises and 70% (45% for the Southwest region) for small businesses.

The adoption of the map is essential for managing authorities of operational programs, who will be able to develop regional aid schemes for the new programming period. Without an approved and functioning regional map of Bulgaria, the funds allocation under operational programs and other sources lies at risk, the Government press service stated.